Case Law Details
Best Buds Pet Care Vs CIT (ITAT Ahmedabad)
Introduction: The Income Tax Appellate Tribunal (ITAT) Ahmedabad recently issued an order directing the reconsideration of Form 10AB for Section 80G registration in the case of Best Buds Pet Care Vs CIT (ITAT Ahmedabad). The appeal was filed against the rejection of registration under Section 80G of the Income Tax Act by the Commissioner of Income Tax (Exemption) [CIT(E)] Ahmedabad.
Detailed Analysis: The appeal highlights that the rejection was based on the grounds that the application, filed for final registration under Section 80G(5) of the Act, was beyond the prescribed time limit. The CIT(E) rejected the provisional registration granted under Section 80G(5) as well. The assessee, a trust formed for animal welfare and assistance to the needy, contended that the rejection was incorrect and unlawful.
The assessee’s counsel argued that the delay in filing Form 10AB was due to bona fide reasons and circumstances beyond the trust’s control. The newly appointed accountant was not familiar with the amended income tax provisions, leading to the delay. The trust promptly filed the application upon realizing the oversight.
Conclusion: In the final analysis, the ITAT acknowledged the bonafide mistake made by the trust and emphasized the need to consider the circumstances. The tribunal set aside the CIT(E)’s order and directed a reconsideration of Form 10AB for final registration under Section 80G. The decision highlights the importance of providing a proper opportunity for the assessee to be heard. It is crucial for trusts to be vigilant about the timelines for registration under the Income Tax Act and to promptly rectify any inadvertent errors to ensure compliance.
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